Egypt Independent

IDSC denies plans to increase electricity prices

Egypt’s Cabinet Information and Decision Support Centre (IDSC) denied social media rumors that the Egyptian government will increase electricity prices.

In a statement released on Friday, IDCS announced that the Ministry of Electricity and Renewable Energy assured that the rumors, which went viral on social media platform, are untrue stressing that there are no price hikes in electricity until the end of the ongoing fiscal year, which ends on June 6, 2019.

The statement added that the government is currently installing pre-paid electricity meters instead of the current electricity meters to help get the electricity bills under control, including 5,7 million meters that have already been installed.

Minister of Electricity Mohamed Shaker announced in June an increase in electricity prices effective July.

Shaker stated the price increase is vital to ensure the continuation of the services, “If we do not increase current prices then electricity subsides would reach 69 billion pounds.”

He added that despite these increase in prices, the government has been subsidizing electricity more than ever, explaining that the subsidies have benn increased by 26.6 percent; 25 percent of this increase has been directed to subsidize home electricity.

Shaker also added that the price increase will be proportionate to consumption rates, as consumption rates reflect on the general financial capabilities of the consumers, therefore it is a fair rate increase, “The more consumed, the higher percentage is paid as those while those who consume less come from a lower financial capability, so they won’t pay as much.”

Last year witnessed a LE 30-billion-government subsidy for electricity and the kilowatt cost 95 cents, according to international gas prices. Despite that, 2017 witnessed a price hike on all consumption levels.

In an attempt to reinvigorate its economy since 2011, Egypt obtained an IMF loan in 2016 in exchange for implementing a rigorous reform program, beginning with floating the pound. Egypt also removed its fuel subsides causing an increase in fuel prices by 66.6. Additionally, Egypt just raised cigarette prices by at least 10 percent.